The company recently announced it will be building a new $900 million multiutilities centre on Jurong Island, which will supply power, steam, firewater and demineralised water to customers.
OCBC Investment Research has raised its fair value for Sembcorp Industries(SGX:U96
) from $4.80 to $5.40, citing the energy and urban development firm's improved ROE amid higher energy prices.
"Successful execution of its renewables strategy provides further scope for re-rating, though good assets may not come cheap currently," writes OCBC in its May 22 note, where a "buy" call has been maintained.
